YOU TUBE: SUNIL PANDA -THE EDUCATOR

BEFORE EXAM LIVE TEST (MOCK)

SUBJECT ECONOMICS (030)
CLASS XII BOARD EXAM 2023
TIME 3 HOURS MAX. MARKS 80
GENERAL INSTRUCTIONS:

1. This question paper contains two sections:

Section A- Macro Economics
Section B- Indian Economic Development
2. This paper contains 20 Multiple Choice Question type questions of 1 Marks each
3. This paper contains 4 Shorts Answer Question type questions of 3 Marks each to be answered in 60 to 80 words.
4. This paper contains 6 Short Answer Question type question of 4 Marks each to be answered in 80 to 100 words.
5. This paper contains 4 Long Answer Question types question of 6 Marks each to be answered in 100 to 150 words.

SECTION A – MACRO ECONOMICS

Q.1) Out of the following, which can have a value more than one? (1)
a) MPC
b) APC
c) APS
d) MPS
Q.2) Surplus in BOP arises when (1)
a) Autonomous Payments > Autonomous Receipts
b) Accommodating Receipts > Accommodating Payments
c) Accommodating Payments > Accommodating Receipts
d) Autonomous Receipts > Autonomous Payments
Q.3) What is the value of money multiplier when initial deposits are 500 crores and LRR is 10%? (1)
a) 0.1
b) 0.2
c) 10
d) 20
Q.4) An Indian real estate company receives rent from Google in New York. This transaction would be recorded on __________ side of
_______ account (1)
a) Credit, Current
b) Credit, Capital
c) Debit, Capital
d) Debit, Current
Q.5) Read the following statements carefully (1)
Statement 1 – Depreciation is a flow concept
Statement 2 – Net change in stock is a stock concept
In the light of the given statements, choose the correct alternative from the following
a) Statement 1is True and Statement 2 is False
b) Statement 1 is False and Statement 2 is True
c) Both Statement 1 and 2 are True
d) Both Statement 1 and 2 are False
OR
Which of the following is an example of an intermediate goods? (1)
a) Car purchased by a dealer of second-hand cars
b) Steel and cement used to construct a flyover
c) Fertilizer purchased by a farmer
d) All of these
Q.6) If an economy, the value of investment multiplier is 4 and Autonomous Consumption is ₹30 Crore, the relevant consumption function
would be: (1)
a) C = 30+0.75Y
b) C = -30+0.25Y
c) C = 30-0.75Y
d) C = 30-0.25Y
OR
If increase in National Income is equal to increase in consumption, identify the value of Marginal Propensity to Save:
a) Equal to unity (1)
b) Greater than one
c) Less than one
d) Equal to zero
Q.7) Which of the following can be used to correct inflationary gap under Monetary Policy? (1)

a) Increase in taxation
b) Reduce availability of credit
c) Cut in government expenditure
d) None of these
Q.8) According to the following data, Balance of Trade would be: (1)
i) Total export of merchandise 1,000 crore
ii) Total imports of merchandise 1,200 crore
iii) Total export of invisible 200 crore
iv) Total imports of invisibles 100 crore
a) Surplus of 100 crore
b) Deficit of 100 crore
c) Surplus of 200 crore
d) Deficit of 200 crore
OR
Trade surplus refers to_________ (1)
a) Export of goods and services > Imports of goods and service
b) Import of goods and services > Export of goods and service
c) Export of invisible items > Import of invisible items
d) Export of visible items > Import of visible items
Q.9) Identify the correct sequences of alternative given in Column II by matching them with respective items in Column I:
(1)
Column I Column II
A. Ex-ante saving (i) Planned output
B. Multiplier (ii) ∆Y/∆I
C. Aggregate supply (iii) Multiplier =5
D. MPC=0.8 (iv) Desired saving
Alternatives:
(a) A-(iii), B-(ii), C-(iv), D-(i)
(b) A-(iv), B-(ii), C-(i), D-(iii)
(c) A-(iv), B-(i), C-(ii), D-(iii)
(d) A-(ii), B-(iv), C-(i), D-(iii)
Q.10) Read the following statement -Assertion (A) and Reason (R). Choose one of the correct alternatives given below: (1)
Assertion (A): Saving curve makes a negative intercept on the vertical axis at zero level of income.
Reason (R): Saving function refers to the functional relationship between saving and income.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
c) Assertion (A) is true but Reason (R) is false.
d) Assertion (A) is false but Reason (R) is true.
Q.11) Calculate National Income: (3)
Particulars Amount
Current transfer by government 15
Private final consumption expenditure 400
Net indirect taxes 60
Government final consumption expenditure 100
Net factor income from abroad -10
Net domestic capital formation 80
Consumption of fixed capital 50
Net export 40
Q.12) State the Components of Current Account of the Balance of Payments Account. (3)
OR
Define appreciation of domestic currency and its impact on imports. (3)
Q.13) In an economy, with every increase in income,20 percent of the rise in income is saved. Suppose a fresh investment of 100 crores
takes place in the economy. Calculate the following (i) change in the income; (ii) Change in consumption (4)

Q.14) Read the following text carefully, discuss briefly the relevant functions of the Central Bank indicated:
The modern banking system is two tiered. This means that at the bottom there are commercial banks i.e. the banks that we interact with on a
day to day basis. They are then managed by a central bank which forms the next level in the hierarchy. The modern banking system
provides Central Banks with considerably more rights and responsibilities
i) Banker’s bank (2)
ii) Lender the last resort (2)
OR
Define Credit Multiplier. What role does it play in determining the credit creation power of the banking system? Use a numerical illustration
to explain. (4)
Q.15) Define Deflationary gap and how it is corrected through
a) Government taxation policy (2)
b) Government expenditure on public welfare works (2)
Q.16) a) Explain “Externalities” as a limitation of Gross Domestic Product as an index of welfare of a country. (3)
b) Explain the problem of double counting and how to avoid this? (3)

Q.17) a) Compare the trends depicted in the figure given below: (3)

Composition of taxses is Gross Tax Revenue

Corporation tax
29% 25%
Taxes on income other than Corporation ax
custom
15% 25%
Union excise duties
6%
GST

b) Give reason, categories the following into revenue receipts and capital receipts: (3)
i) Recovery of loans ii) Corportation taxiii) Dividends on investments made by government
iv) Sale of public sector undertaking
OR
a) Distinguish between Revenue receipts and Capital receipts with example (3)
b) Explain the “allocation of resources” objective of government budget. (3)
 SECTION B – INDIAN ECONOMIC DEVELOPMENT
Q.18) Arrange the following events in the chronological order and choose the correct alternative: (1)
i) The year of great divide ii) Establish of Tata iron and steel company (TISCO)
iii) Introduction of Railways in Indian by the British iv) Opening of Suez Canal
Choose the correct alternative:
a) (ii), (i), (iv), (iii)
b) (iv), (ii), (i), (iii)
c) (iii), (iv), (ii), (i)
d) (iv), (i), (ii), (iii)
Q.19) Identify the correct sequence of alternative given in Column II by matching them with respectively term in Column I
(1)
Column I Column II
A. Establishment of General Agreement on trade and tariff (i) 2017
B. Foundation of world trade organisation (ii) 2016
C. Demonetisation by Indian Government (iii) 1948
D. Goods and service tax act came into effect (iv) 1995

Choose the correct alternative:

a) (i), (iv), (ii), (iii)
b) (ii), (iv), (iii), (i)
c) (iii), (iv), (i), (ii)
d) (iii), (iv), (ii), (i)
OR
Which of the following falls under the role of the WTO? (1)

a) Setting the limit for domestic and foreign investments in a country

b) Mandating the level of tax levied on foreign firms in developing countries
c) Aiding the development of poor countries by providing infrastructural investment
d) Providing a platform for member countries to decide future tariff-related strategies
Q.20) Identify the correct sequences of alternative given in Column II by matching them with respective items in Column I:
(1)
Column I Column II
A. Great Proletarian Cultural Revolution (i) India
B. Show level of growth and development of a country (ii) China
C. Sixth most populous country in the world (iii) Human Development Index
D. To transform Agrarian Economy into Modern Economy. (iv) Pakistan
E. Highest Density of Population (v) Great Leap Forward Campaign
Alternatives:
(a) A-(ii), B-(iii), C-(iv), D-(v), E (i)
(b) A-(iv), B-(ii), C-(i), D-(iii), E (v)
(c) A-(iv), B-(i), C-(ii), D-(iii), E (v)
(d) A-(ii), B-(iv), C-(i), D-(iii), E (v)
OR
Liberty indicator relates to: (1)
a) Political freedom
b) Freedom to gain education
c) Freedom to access health services
d) Both (a) and (c)
Q.21) Inward looking trade strategy aimed at protecting domestic industries from ____________ competition. (1)
a) National
b) International
c) Both (a) and (b)
d) Neither (a) nor (b)
Q.22) Introduction of Economic Reforms in China took place in the year (1)
a) 1978
b) 1980
c) 1988
d) 1991
Q.23) Read the following carefully and choose the correct alternative from the following: (1)
Statement 1: To address noise pollution in India, the government set up the Central Pollution Control Board in 1974
Statement 2: The Central Pollution Control Board has identified 37 categories of industries as significantly polluting.
a) Both statements are true
b) Both statements are false
c) Statement 1 is true and Statement 2 is false
d) Statement 2 is true and Statement 1 is false
Q.24) In the year ___________ , the Indian Government made education free and compulsory for all children between 6-14 years. (1)
a) 2001
b) 2009
c) 2003
d) 2007
Q.25) _______________is not a cause for environmental degradation. (1)
a) Waste management
b) Deforestation
c) Global warming
d) Guarding green cover
OR
______ is not the strategy for Sustainable Development. (Choose the correct alternative) (1)
a) Use of bio-gas
b) Use of solar power
c) Use of thermal power
d) Use of hydel power
Q.26) Read the following statements: Assertion (A) and Reason (R). choose one of the correct alternatives given below:
(1)
Assertion (A): Labour force can increase or decrease only when the number of persons actually working or willing to work increases or
decreases.
Reason (R): Labour supply is always measured in terms of the number of persons.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
c) Assertion (A) is true but Reason (R) is false
d) Assertion (A) is false but Reason (R) is true
Q.27) Which sector of the economy contributes the highest to India’s GDP? (1)
a) Service
b) Agriculture
c) Industry
d) All of these
Q.28) How human capital formation causes innovations, and invention (3)
Q.29 Compare and analyse the Distribution of employment in different sectors on Gender basis.

Distribution of employment (male-female) in different sectors. (2017-18)

Sex Primary (%) Secondary (%) Tertiary (%)
Male 40.7 26.5 32.8
female 57.1 17.7 25.2

OR
Write any 3 Positive contributions made by British Government in India.
Q.30) Compare and analyse the following information related to the given Demographic indicators of all three neighbouring countries. (4)
Demographic Indicator 2017-18
Country Annual growth of population Density (per sq. km) Fertility rate
India 1.03 455 2.2
China 0.46 148 1.7
Pakistan 2.05 275 3.6

Q.31) Distinguish between:

a) Tariff and Non-Tariff Barriers (2)
b) Bilateral and Multilateral trade (2)
OR
What is Green Revolution? Why was it implemented and how did it benefit the farmers? Explain in brief. (4)
Q.32) Explain the following
a) Casualisation of workforce (2)
b) Informalisation of workforce (2)
Q.33) a) What do you mean by formal and informal sector? Discuss the condition of workers in each of these sector. (3)
b) Explain Great leap forward introduced by china to modernise its economy (3)
OR
What similar development strategies have India, China and Pakistan followed for their respective development paths. (6)
Q.34) Read the following text carefully and answer the given question on the basis of the same and common understanding:
Samridhi Ltd. Company focuses on Crop Diversification as they feel that it is better option to focus on more and more increasing needs of
present era. Crop diversification provides better conditions for food security and enables farmers to grow surplus products for sale at market
and thus help to obtain increased income to meet other needs related to household well-being. Crop diversification can enable farmers to
gain access to national and international markets with new products, food and medicinal plants. Diversifying from the monoculture of
traditional staples can have important nutritional benefits for farmers in developing countries and can support a country for becoming more
self-reliant in terms of food production. Diversification can also manage price risk, on the assumption that not all products will suffer low
market prices at the same time and increase the profitability of the farming community.
a) Explain the need of diversification in terms of agriculture? (3)
b) What are the problems in Organic farming. (3)